Consolidated SPL

Revenue
Cost of Sales
Gross Profit
operatig expenes
impairment
Profit before tax
income tax
profit after tax

Profit Attributable to:

Equity Holders of the Parent

NCI

NCI (SPL)

Profit attributable to NCI 1500

Adjustment:
URP w2 -800
Impairment -1000
Dep w2 -200
-500
NCI @ 40% -200
SPL

$0
98000
72000
26000
11100
1000
13900
5400
8500

8700
-200
8500
 Consolidated statement of financial position of ABC as at

$m $m
Non-Current Assets
Property, plant and equipment (P+S+/-FV adj+/-FV dep) 55000
Goodwill (W3) 3500
Investment (Other than Parent’s Investment in Subsidiary)
Investment in Assosicates

Current Assets
Inventory (P+S+GIT-PURP) 21400
Trade receivables (P+S-CIT-intra-group)
Bank (P+S+CIT)

Total Assets 79900

Equity and liabilities

Equity shares (Parent Only) 11600
Share Premium (Parent Only) W7 8000
Retained earnings (W5) 35100
Other Reserves

Non-controlling interest (W4) 5700

Total Equity 60400

Non-current liabilities
Loan NOTES 10% 7000

Current liabilities
Trade payables (P+S+GIT Payable-intra-group) 12500

Total equity and liabilities 79900

 (W1) Group structure
susidary 60%
(W2) Net assets $000
At acquisition
Share capital 4000
Share Premium
Retained earnings 5000
Fair value adjustment 2000
Fair value depreciation
PURP (S:P)
Other adjustment
Land
11000

(W3) Goodwill $000

Cash
Shares Exchange ( Total Shares of subsidiary * Fraction * Share Price) 9600
Contingent Consideration (Amount * Discount Factor)
Deferred Consideration (Amount * Discount Factor)
Add: Non-Controlling Interest 5900
Less: Fair value of net assets at acquisition (W2) -11000
Goodwill on acquisition 4500
Impairment 1000
SFP 3500

(W4) Non-controlling interest $000 (SFP)

NCI value at acquisition (as in W3) 5900

NCI share of post-acquisition reserves (W2) 200
NCI share of impairment (fair value method only) 400
SFP 5700

(W5) Group retained earnings

P's retained earnings (100%) 35400

P's % of sub's post-acquisition retained earnings 300
Parent share of impairment (W3) -600
Unwinding of the discount
Acquisition costs to be expensed
Post-acquisition profits of Associate
Other Gains/Losses
PURP - P:S
 35100

(W6) PURP $000

2000*25/125 400

(W7) ADJUSTMENTS $000

SHARE PREMIUM 9600
SHARE CAPITAL 2400
At reporting date Post acq
4000

6500
2000
-200 -200
-800

11500 500